The Directorate of Enforcement (ED) raided eight locations in Kozhikode district on Tuesday in connection with its probe into allegations of money laundering in the CMRL - Exalogic case.
The case pertains to alleged fraudulent monthly payments to the tune of ₹2.78 crore that Cochin Minerals and Rutile Limited (CMRL), a chemicals manufacturer based in Kochi, made to Exalogic, the defunct IT firm run by Veena T, the daughter of former CM Pinarayi Vijayan.
An Income Tax Interim Settlement Board had found in 2023 that Veena’s firm delivered no tangible services in exchange for receiving the money from CMRL though an agreement for marketing and software services had been drawn up between the two firms.
Officials familiar with the matter said the raids took place at eight locations including an apartment belonging to P Nikhil, a district secretariat member of the CPI(M) in Kozhikode. Other premises are reportedly linked to close associates and friends of PA Mohammed Riyas, husband of Veena T and the CPI(M) MLA from Beypore.
“The raids today are fully politically motivated. It appears as if someone is being deliberately targeted. We will fight against it politically and legally,” said M Mehboob, CPM district secretary.
The central agency had earlier conducted searches at the rented premises of former CM Vijayan and his daughter Veena in Thiruvananthapuram in May.
{{/usCountry}}The central agency had earlier conducted searches at the rented premises of former CM Vijayan and his daughter Veena in Thiruvananthapuram in May.
{{/usCountry}}In June, a division bench of the Kerala high court gave a greenlight to the ED to continue its probe into the case under the PML Act.